• Contact Us
  • Affiliate Disclosure
  • Privacy Policy
  • Terms of Use
  • DMCA
Saturday, January 28, 2023
WongaNews.com
  • Live Prices
  • Crypto News
  • Bitcoin
  • Altcoins
  • NFT News
  • Blockchain
  • Regulations
  • Trading
No Result
View All Result
  • Live Prices
  • Crypto News
  • Bitcoin
  • Altcoins
  • NFT News
  • Blockchain
  • Regulations
  • Trading
No Result
View All Result
WongaNews.com
No Result
View All Result

Bitcoin Retail Volumes Show Weakness In Rally

August 23, 2022
in Bitcoin
Reading Time: 3 mins read
A A
ShareShareShareShareShare

Related articles

Marathon plans 250 MW Abu Dhabi bitcoin mining JV

January 27, 2023

Inflation May Be In A Lull, What Does That Mean For Bitcoin?

January 27, 2023

The decline in the price of bitcoin following the rally has unearthed some underlying weaknesses that were not easily seen before. The run-up and eventual rundown from $25,000 have shown that retail investors are not as moved by the market as expected. Even now, transaction volumes for retail investors remain muted, indicating that the burnout from the rally was actually a result of low bullish sentiment.

Bitcoin Retail Volume Remains Low

In a recent report, Glassnode points to the low retail volume as an indicator of the weakness of the market. Usually, retail investors react to long bullish phases and, as such, tend to increase their transaction volumes at the same time. But during this last bullish rally, there was really no change in how much volume bitcoin retail investors were moving.

The chart shows a decline from around June, which coincides with when the market crash happened. However, since then, the downtrend has been consistent. So instead of increasing their transaction volumes as expected when the price was recovering, they continued to reduce their volume, falling below $10,000 on average.

BTC retail interest remains muted through recovery | Source: Glassnode

The report points to this being an obvious weakness in the market because there was no volume or demand accompanying the shift in market sentiment. This is understandable given that sentiment can only drive the market for so long, and if supply continues to exceed demand significantly, then the price of the digital asset is bound to fall sooner rather than later.

Sell Pressure On BTC

The selling pressure on bitcoin has been on the rise in the last week. This is following the drop in price back to $21,000, causing panic in the markets. The crypto market sentiment has obviously taken a hit from the decline and has now fallen further into the fear territory on the Fear & Greed Index.

Bitcoin price chart from TradingView.com

BTC settles firmly above $21,000 | Source: BTCUSD on TradingView.com

Indicators currently point to an 80% sell signal, and if BTC is unable to hold $21,000, then a decline below $20,000 is imminent. It is also important to note that the most prominent support level from here lies in the $20,711 territory. What this means is that the current trend is barely hanging by a thread. 

Glassnode also notes that investors across the market had leaned in favor of actually distributing their holdings at an above-market average cost basis level. This, coupled with the fact that there was no significant demand for the digital asset, led to the decline.

The market also shows no signs of having hit a bottom yet. So it is likely that $17,600 is not as low as the digital asset will go. Bitcoin, following historical trends, will likely hit around $12,000, at which point demand would rise. Coinciding with the next halving will trigger the start of the next bull run.

Featured image from Capital.com, chart from TradingView.com

Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet…


Credit: Source link

ShareTweetSendPinShare
Previous Post

Scaling Problem For Lightning Labs Taro – Bitcoin Magazine

Next Post

ETH Trades Around $1600; Tamadoge Keeps Ascending

Related Posts

Marathon plans 250 MW Abu Dhabi bitcoin mining JV

January 27, 2023

Marathon Digital, a crypto mining company, is initiating a $406 million joint venture (ADGM Entity) with FS Innovation to build...

Inflation May Be In A Lull, What Does That Mean For Bitcoin?

January 27, 2023

In a recent tweet Ben Lilly, co-founder of Jarvis Labs, the on-chain analytics and token design firm, gave his analysis...

Biden Admin Roadmap Cryptocurrency Risks – Bitcoin Magazine

January 27, 2023

The Biden Administration has posted an official blog detailing its roadmap to mitigate the risks of cryptocurrencies.The roadmap starts by...

Polygon (MATIC) Surges Nearly 10% As zkEVM Network Update Draws Near

January 27, 2023

Amid the ubiquitous rally in the crypto market, multiple crypto assets including MATIC have climbed higher highs, thriving to reach...

Bitcoin Difficulty Set to Rise 3.82% to All-Time High of 39 Trillion Following Recent Increase – Mining Bitcoin News

January 27, 2023

The Bitcoin network is set to record another meaningful difficulty increase on Sunday, Jan. 29, 2023, as current estimates expect...

Load More
Next Post

ETH Trades Around $1600; Tamadoge Keeps Ascending

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recommended

DOJ Accuses Bitzlato Crypto Exchange of Money Laundering, Arrests Founder

January 18, 2023

The Tribeca Film Festival Adopts VIP NFT Passes

January 17, 2023

Ethereum Classic Price Prediction for Today, December 29: ETC/USD Resumes Uptrend

December 29, 2022

About Us

Wonga News is an online news portal that aims to provide the latest crypto news, blockchain, regulations, and much more stuff like that around the world. We promise to share only high quality content from the world's best crypto sources. Feel free to get in touch with us!

What’s New Here!

  • Lawyer Predicts Grayscale’s Win Against The SEC In Supreme Court
  • U.S. Representative French Hill offers insights into digital asset regulations
  • NFT Collection Laid Back Llamas Collection Price, Stats, and Revi…

Newsletter

Loading
  • Contact Us
  • Affiliate Disclosure
  • Privacy Policy
  • Terms of Use
  • DMCA

© 2022 WongaNews.com - All Rights Reserved!

No Result
View All Result
  • Live Prices
  • Crypto News
  • Bitcoin
  • Altcoins
  • NFT News
  • Blockchain
  • Regulations
  • Trading

© 2022 - WongaNews.com - All Rights Reserved!

  • bitcoinBitcoin(BTC)$23,158.001.02%
  • ethereumEthereum(ETH)$1,603.990.93%
  • USDEXUSDEX(USDEX)$1.07-0.47%
  • tetherTether(USDT)$1.00-0.02%
  • usd-coinUSD Coin(USDC)$1.000.01%
  • binancecoinBNB(BNB)$309.182.27%
  • rippleXRP(XRP)$0.4155011.81%
  • binance-usdBinance USD(BUSD)$1.000.01%
  • cardanoCardano(ADA)$0.3968745.50%
  • dogecoinDogecoin(DOGE)$0.0882912.74%
  • matic-networkPolygon(MATIC)$1.155.32%
  • solanaSolana(SOL)$24.693.12%
  • okbOKB(OKB)$36.391.29%
  • staked-etherLido Staked Ether(STETH)$1,600.600.93%
  • polkadotPolkadot(DOT)$6.643.88%
  • shiba-inuShiba Inu(SHIB)$0.0000122.47%
  • avalanche-2Avalanche(AVAX)$21.3319.17%
  • litecoinLitecoin(LTC)$89.002.51%
  • tronTRON(TRX)$0.0636562.76%
  • uniswapUniswap(UNI)$6.902.80%
  • daiDai(DAI)$1.000.24%
  • wrapped-bitcoinWrapped Bitcoin(WBTC)$23,099.001.09%
  • cosmosCosmos Hub(ATOM)$13.816.74%
  • ToncoinToncoin(TON)$2.567.62%
  • chainlinkChainlink(LINK)$7.465.30%
  • leo-tokenLEO Token(LEO)$3.865.98%
  • moneroMonero(XMR)$180.716.08%
  • ethereum-classicEthereum Classic(ETC)$22.181.99%
  • AptosAptos(APT)$18.325.05%
  • bitcoin-cashBitcoin Cash(BCH)$135.591.12%
  • Aerarium FiAerarium Fi(AERA)$7.12-13.06%
  • stellarStellar(XLM)$0.0933682.19%
  • apecoinApeCoin(APE)$6.323.59%
  • quant-networkQuant(QNT)$153.284.25%
  • nearNEAR Protocol(NEAR)$2.595.55%
  • crypto-com-chainCronos(CRO)$0.0825782.96%
  • filecoinFilecoin(FIL)$5.482.55%
  • lido-daoLido DAO(LDO)$2.427.03%
  • algorandAlgorand(ALGO)$0.2604286.73%
  • vechainVeChain(VET)$0.0249824.92%
  • hedera-hashgraphHedera(HBAR)$0.0701035.82%
  • internet-computerInternet Computer(ICP)$6.095.89%
  • axie-infinityAxie Infinity(AXS)$11.661.37%
  • decentralandDecentraland(MANA)$0.716.73%
  • aaveAave(AAVE)$87.960.53%
  • eosEOS(EOS)$1.122.22%
  • the-sandboxThe Sandbox(SAND)$0.775.83%
  • fantomFantom(FTM)$0.4747110.23%
  • flowFlow(FLOW)$1.111.70%
  • theta-tokenTheta Network(THETA)$1.126.89%